Agricultural And Rural Insurance Funds Act

Original Language Title: Ley de Fondos de Aseguramiento Agropecuario y Rural

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SECRETARIAT OF FINANCE AND PUBLIC CREDIT

SECRETARY OF FINANCE AND PUBLIC CREDIT

DECREE that the General Law of Mutual Institutions and Societies of Insurance is reformed and the Law on Agricultural and Rural Assurance Funds is issued.

On the sidelines a seal with the National Shield, which reads: United Mexican States.-Presidency of the Republic.

VICENTE FOX QUESADA, President of the United Mexican States, to its inhabitants known:

That the Honorable Congress of the Union, has served to address the following

DECREE

THE GENERAL CONGRESS OF THE MEXICAN UNITED STATES, DECREES:

REFORM THE GENERAL LAW OF INSURANCE INSTITUTIONS AND MUTUAL SOCIETIES AND THE LAW OF AGRICULTURAL INSURANCE FUNDS IS ISSUED RURAL

Article First.- Reformation is reformation and a third paragraph is added to item 1o. of the General Law of Mutual Insurance Institutions and Societies, in order to remain as follows:

Item 1o. ...

...

...

This Law recognizes the Agricultural and Rural Assurance Funds, which will be subject to Article 13 of this Law and will be regulated for the purposes of their organization. operation and activities, by the Law on Agricultural and Rural Assurance Funds.

Article 13. Associations of persons who do not issue policies or contracts, grant their members safe in the event of death, benefits in those of accidents and diseases or (a) compensation for damages, with the exception of high-risk hedges for the amount or accumulations and those of a catastrophic nature, unless they relate to the operations relating to the agricultural and animal industries or to the insurance of goods linked to agricultural activity, may operate without being subject to the conditions required by this Law, but must be subject to the general rules issued by the Secretariat of Finance and Public Credit, where the bases will be established so that, where appropriate, the number of associates, by the frequency and the importance of the insurance which they grant and of the claims paid, the same Secretariat directs these associations to comply with this Law, becoming mutual insurance companies.

Article Second.- The Agricultural and Rural Assurance Funds Act is issued to remain as follows:

AGRICULTURAL AND RURAL INSURANCE FUND LAW

PRELIMINARY TITLE GENERAL PROVISIONS

Single Chapter

Article 1o. This Law is of public order and general observance throughout the national territory. It aims to create and regulate the organization, operation and operation of the System of Agricultural and Rural Assurance Funds, which will be constituted by the Funds of Assurance and its Integrative Agencies, which will register with the Secretary of Finance and Public Credit in the terms of this Law, with the following specific purposes:

I. Promote, promote and facilitate the insurance service by the Agricultural and Rural Assurance Funds;

II. Regular activities and operations that the Agricultural and Rural Assurance Funds will be able to carry out, as well as establishing the Technical Advisory and Monitoring Service Operations to be received, with the purpose of achieving their healthy and balanced development;

III.       Regular the organization, operation and operations of the Integrators of the Agricultural and Rural Assurance Funds;

IV. Grant certainty and legal certainty in the protection of the interests of those who celebrate operations with these Agricultural and Rural Assurance Funds, and

V. Establish the terms in which the Agricultural and Rural Assurance Fund System operations will be tracked.

The Secretariat of Finance and Public Credit will be the competent authority to interpret in its administrative aspects the precepts of this Law and in general, for all the subjects of the same. For these purposes, the Secretariat may request, when deemed appropriate, the opinion of any body, agency or entity due to the nature of the cases that merit it.

Article 2o. For the purposes of this Act, it is understood by:

I. Secretariat, to the Finance and Public Credit Secretariat;

II.       Commission, to the National Insurance and Fiances Commission;

III.       SAGARPA, to the Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food;

IV.     Fund of Assurance, in singular or plural, are the societies constituted as Funds of Agricultural and Rural Securement, in the terms of this Law and of the provisions of article 13 of the General Law of Institutions and Mutual Insurance Companies;

V.      Agroasemex, a AGROASEMEX, S.A., National Insurance Institution;

VI.     Body Integrator, in singular or plural, to the Associations of Assurance Funds that are constituted in the National, State and Local areas, in accordance with the provisions of this Law;

VII.    Body National Integrator to the National Integrator of Agricultural and Rural Assurance Funds formed by State Integrators, in accordance with the provisions of this Law;

VIII.    Organization State State, in singular or plural, to the Associations of Assurance Funds formed by Local Integrators and/or by Funds of Assurance of a Federative Entity, in accordance with the provisions in this Act;

IX.     Organization Local Local, in singular or plural, to the Associations of Assurance Funds formed by Funds of Assurance of the same zone within a Federative Entity, in accordance with the provisions of this Law;

X.      Partners, to the natural or moral persons who participate as partners of the Assurance Funds in the terms of this Law;

XI.     Lines of Operation, to the operations and classes of insurance that the Assurance Funds may practice under the registration with the Secretariat, in accordance with this Law, the General Law of Institutions and Societies Insurance mutualists and the General Rules issued by the Secretariat;

XII.    System Protection, the system integrated by the Protection Fund and the Common Risk Retention Funds, in the terms of this Act;

XIII.    Fund of Protection, to the resources constituted by contributions from the Assurance Funds and other contributors, intended for the purposes set out in this Act;

XIV.   Back Retention Common Risks, in singular or plural, to resources constituted by contributions from the Assurance Funds and other contributors, intended for the purposes set forth in this Act;

XV.    Committee Technician, to the committees of the Integrators, constituted for the administration of the Fund of Protection and the Funds of Common Retention of Risks;

XVI.   Technical Advisory and Tracking OperationsCommittee, to the Committee of the Integrators responsible for planning, coordinating, directing, and evaluating the delivery of the services they offer to their affiliates, and

XVII. Coinsurance, to the participation by agreement between an Insurance Fund and an insurance institution at the same risk.

Article 3o. The Assurance Funds are the companies incorporated in the terms of this Law and will aim to provide mutual protection and solidarity to their partners through of active insurance and co-insurance operations. The coverage offered shall be limited to the following:

I. In damage operations, to the agricultural and animal branch and to those classes that specifically register with the Secretariat for the insurance of the related goods agricultural, rural and heritage activities;

II. In life operations, to coverages with limited insured sums to address debtor and life balance schemes for peasant families, and

III.       In the operations of accidents and diseases of their partners, the class of personal accidents.

For the purposes of life operations, hedges shall be practiced by exclusively-constituted Assurance Funds for this purpose.

In the provision of coverage for rural areas, all the lines of operation that offer protection to the rural population, their property and people and their activities are included. productive, commercial, service or otherwise, in the terms of this article.

Article 4o. The operations performed by the Assurance Funds shall be supported by their own technical reserves, by the reinsurance and co-insurance contracts and, if applicable, by the Protection Fund and the Common Risk Retention Funds, in the terms provided for in this Law, so that the Federal Government and the Public Administration Entities will not be able to take responsibility or guarantee the result of the operations to be carried out by the Assurance Funds or the Agencies Integrators, as well as not taking responsibility for the fulfillment of the obligations contracted with their partners.

Article 5o. The words Assurance Fund, Agricultural and Rural Assurance Fund may only be used in the name of the Assurance Funds that are registered to operate in the terms of this Law. Except for the application of the above, to the Integrators registered in the terms of this Law.

Article 6o. As not provided for in this Law, the following laws shall apply to the subjects of the same law:

I. The General Law of Mutual Insurance Institutions and Societies;

II. Commercial Legislation;

III. The Federal Civil Code, and

IV. The Federal Code of Civil Procedures.

The principles set forth in the Law on the Insurance Contract shall apply to the operations of the Assurance Funds, as compatible with their object of protection mutualist and solidarity with its partners.

TITLE FUNDS FIRST TITLE

Chapter First Of Your Constitution and Record

Article 7o. The constitution of an Assurance Fund shall be made in accordance with the following bases:

I. You must subscribe to the social contract and the Statutes, which must be contained in constitutive public deed in accordance with the provisions of this Law, stipulating their character as a non-profit society, their legal personality and their heritage;

II. The social object will be limited to functioning as an Assurance Fund, in the terms of this Act;

III.       It may be stipulated that the duration of the company shall be indefinite;

IV.      The domicile of the company must always be within the national territory;

V.       The name of the company must express its character as an Assurance Fund;

VI. In constitutive public writing the relationship of founding partners, as well as administrators, senior managers and people who will integrate the bodies referred to in this Law, and

VII. Point out the names, nationality, and addresses of associates, counselors, and officials, who must comply with the requirements set forth in this Act.

Article 8o. The registry to operate as an Assurance Fund will be granted by the Secretariat, for which the following procedure will be followed:

I. Application must be submitted in accordance with the provisions of Article 9o. of this Act, to the relevant State Integrator Body or, if not, to the National Integrator Agency, who shall draw up an opinion on the provenance of such an application;

II. The Secretariat will resolve the registration requests, which must be accompanied by:

a) The favourable opinion of the respective integrator body;

b) The testimony of constitutive public deed, containing the Statutes that shall adhere to the provisions and mechanisms that this Law establishes, as well as its registration in the Public Registry of Property and Commerce, and

c) The general operation programme, which will enable the Secretariat to assess whether it will be able to meet its object adequately. This programme shall contain at least: (i) the regions and municipalities in which it intends to operate; (ii) a financial feasibility study for each type of insurance operation and classes intended to operate; including the basis for the retention of risks assumed by the Insurance Fund from its reserves, as well as its transfer in reinsurance and/or co-insurance in each case; (iii) the basis for the application of remaining assets; and (iv) the basis for its internal organisation and control.

The Member States shall send to the Secretariat, in accordance with this Article, applications for which they have delivered a favourable opinion, accompanied by and the Secretariat shall deliver its resolution through such Integrators, or directly in the case of Assurance Funds that opt for the non-affiliated scheme;

III.       With regard to those insurance funds which are intended to obtain registration and which are opted for by the non-member scheme, they may go directly to the Secretariat, to the effect that the Secretariat will appoint the Member issue the relevant opinion, continuing with the procedure outlined in the previous paragraph;

IV.      In case the Insurance Fund receives an unfavourable opinion from the State or National Integrator Agency, as the case may be, it may request the review of the Fund before the same Integrator Agency. If the unfavourable opinion is ratified, the Guarantee Fund may request the revision of its application to the Secretariat, who must resolve the matter. Applicants shall have a period of 30 working days from the date on which they are notified of the ratification of the unfavourable opinion in order to present the Secretariat directly to the Secretariat.

V. The Integration Agencies will have a period of 15 working days to prepare their opinion or to resolve the requests for review, and the Secretariat will count with a period of 30 working days to issue a decision on the registration applications submitted to it. These deadlines shall begin to count, respectively, from the date on which the applications are submitted to the Integrators ' Agencies or to the Secretariat with all the information and documentation referred to in the following Article Law;

VI. The Secretariat shall be deemed to have resolved the application for registration in an approved manner, if it does not communicate the contrary to the Integrator Agency or the Insurance Fund. applicant within the period mentioned in the previous fraction. It shall also be understood that the Secretariat resolves, in a non-approved manner, the application for registration filed directly by an applicant who has obtained an unfavourable opinion, if he does not communicate the contrary to the applicant within the period mentioned;

VII. Any requirement of information or documentation to be made by the Secretariat to the Integrator Agency or the applicant shall suspend the calculation of the period with which the Secretariat to issue its resolution. That period shall begin to be further computed from the receipt of the required information or documentation;

VIII. The Integrator Agency in its opinion will propose to the Secretariat, operations and insurance classes that, in terms of the provisions of Article 3o. of this Law, protect the registration. In order for the Insurance Fund to expand its operations or classes, it will be required to modify its registration with the Secretariat, as provided for in this article, and

IX. The records provided by the Secretariat will be non-transferable and will not imply support for the fulfilment of the obligations of the Assurance Funds, the Secretariat assumes no responsibility for such registration.

Article 9o. The request to obtain the opinion must be accompanied by the following:

I.         The draft of the constitutive public deed, containing the Statutes that must adhere to the provisions and mechanisms introduced by this Law;

II. The general operating program, which allows you to assess whether you can properly meet your object. This programme shall contain at least:

a) The regions and municipalities in which you intend to operate;

b) A financial feasibility study for each type of insurance operations and classes that it intends to operate; including the basis for the risk retention assumed by the Fund Insurance with respect to its reserves, as well as its transfer in reinsurance and/or co-insurance in each case;

c) The bases for the application of remnants, and

d) The bases for your internal organization and control.

III.       The accreditation of the moral and economic solvency of the principal officials;

IV. Letters of intent from insurance or reinsurance institutions to participate in the risks assumed by the Insurance Fund, and

V. The draft membership contract or Technical Advisory and Operations Tracking contract that, if any, would be held by the applicant with an Integrative Body, including the acceptance by this party to celebrate.

Any modification to the constitutive writing of the Underwriting Fund and its Statutes shall be submitted to the prior opinion of the corresponding integrator body, in terms of the Affiliate or Technical Advisory and Operations Tracking Contract, as the case may be. After obtaining the favourable opinion of the Integrator Agency, it shall forward it to the Secretariat for knowledge.

Dealing with Unaffiliated Assurance Funds, this procedure shall be performed with the Secretariat in the terms of this Article.

The deed or its reforms must be registered in the Public Registry of Property and Commerce of the corresponding registered office, and must be displayed before the Secretariat copies certified of the respective testimony within a hundred and twenty calendar days counted from the date of their registration.

At no time shall the name of the Assurance Fund be formed with the name, words, acronyms or symbols identifying it with political or religious organisations.

Chapter Second Of Your Organization

Article 10. The Assurance Funds will count, at least, with the following organs:

I.         General Assembly of Partners;

II. Board of Directors;

III. Surveillance Council, and

IV.      A Director or Manager.

Article 11. The General Assembly of Partners shall be the highest authority of the Assurance Fund. The assemblies shall be held at the head office of the Insurance Fund, except fortuitous or force majeure, which shall be specified in the respective minutes.

Article 12. The following are the privileges of the General Assembly of Partners:

I. Approve the Statutes, the Rules of Procedure, as well as the respective modifications;

II. Name the members of the Board of Directors and the Supervisory Board;

III. Approve insurance and reinsurance budgets and programs; contributions to the Protection Fund and the Common Risk Retention Fund; contributions extraordinary; and, the payment of the dues to the Integrators;

IV. Approve the evaluation of results, balance sheets and financial statements and the program of application of the remnants in terms of this Law;

V. Authorize admission, separation, suspension, or exclusion of partners. Admission, suspension and separation may be delegated to the Board of Directors, if provided for in the Statute. The agreements adopted by the Board of Directors shall be ratified at the next General Assembly of Partners. The suspension or exclusion of any partner shall proceed when it incurs violations of the Statutes, the rules of procedure of the Insurance Fund or this Law;

VI.      Approve, in the case of, the merger, division, transformation or dissolution of the Insurance Fund, which shall be made out of the knowledge of the Secretariat;

VII. Remove members of the Board of Directors for the following circumstances:

a) Incompliance with the agreements adopted by the General Assembly of Partners or the provisions of this Law;

b) Use the financial, financial, human, or material resources of the Insurance Fund or commit unlawful acts to the detriment or tort of the Fund Insurance or its partners, and

c) Incur the causes of removal that establish the Statutes or this Law.

VIII.    Any other matter reserved to you in the terms of this Law and the Statutes.

Article 13. The General Assembly of Partners shall meet in an ordinary manner, at least three times during the annual exercise; and in an extraordinary manner where necessary.

Calls for sessions of the General Assembly of Partners shall be issued by the Board of Directors or the Supervisory Board. Members representing at least 10% of the total votes may ask the Board of Directors or the Supervisory Board for the convening of an extraordinary session of the General Assembly of Members. to deal with the cases they indicate in their request. If they do not do so, they must inform the next session of the General Assembly of the reasons that explain their determination.

The call for sessions should be made in writing, specifying the issues to be dealt with and reporting to stakeholders. The form and terms of the notification shall be recorded in the minutes of the respective session.

Article 14. For the General Assembly of Members in ordinary session to be legally constituted, the duly accredited representation shall be required of at least half of the plus one of the votes, and in the extraordinary session, seventy-five percent. These same percentages will be required to approve the resolutions to be taken in such sessions.

Dealing with Second Convocation, both for ordinary and extraordinary session, will be installed with the votes represented and decisions will be made by simple majority.

Article 15. In the Statutes, the mechanism will be determined to assign the number of votes per partner, being a partner one vote, or a proportional representation modality to set the number of votes per partner based on the partner's participation in the sum of the insured securities or insurance fund shares. The number of votes per partner shall not exceed 10% of the insured values or shares of the company.

Of any session of the General Assembly of Partners, the corresponding record will be lifted, which will be signed by the assistants to it. In case you, who must sign, cannot do so, you will print your fingerprint below your name, signing on to the side who serves as the Assembly Secretary.

Article 16. The natural or moral persons or groups of members belonging to an Insurance Fund may appoint a representative to be on his behalf, attend the sessions of the General Assembly of Partners. When a person represents two or more partners, he shall exercise the sum of the votes of the partners he represents.

In no case may the persons holding a position within the Board of Directors or Surveillance of the Insurance Fund, or the persons providing their services, be representatives of members. services to the same. The representation referred to in this article shall be conferred in a simple letter of power signed before two witnesses. The acts of the representative shall oblige the represented partners.

To be elected as a partner, before the General Assembly of the Insurance Fund Partners, you must comply with the following:

I. Being in the full exercise of your civil rights;

II. In your case, be part of the moral person you intend to represent, and

III. Not being a member of another Assurance Fund or representing more than one moral person.

Article 17. The Board of Directors shall consist of a minimum of three owning members and a maximum of seven, and their respective alternates. In any case, the number of members will be odd. In no case will the members of this Council be able to form part of the Supervisory Board. In case of a tie the President shall have a vote of quality.

The Board of Directors shall appoint from among its members a President, a Treasurer and a Secretary; the others, if any, shall have the status of vowels.

The counselors will last for three years and may be re-elected, if they are established by the Statutes.

Article 18. To be a member of the Board of Directors, it must be at least to meet the following requirements:

I.         Be in full exercise of your civil rights;

II. Be a member of the Assurance Fund or the moral person who appoints you as a representative in full exercise of your Insurance Fund partner rights;

III. Do not have any of the impediments listed in the following article, and

IV. Others that this Act or the Statutes of the Assurance Fund determine.

Article 19. no case may they be Directors of the Insurance Fund:

I.         People who are in charge of the Insurance Fund in question, as well as other insurance funds;

II. People whose sentence has been executed for intentional offenses;

III. Persons who have pending litigation with the Assurance Fund, and

IV. Anyone who performs a public office, popular choice or political or religious leadership.

The same impediments will apply to Councillors in the cases of National, State and Local Integrators.

Article 20. These are the powers and obligations of the Board of Directors:

I. Represent the Insurance Fund to Third Parties, with general powers for litigation and charges, acts of administration and domain; as well as for granting powers general and special, with the sole limitation that in order to dispose of goods that are part of the fixed assets of the Insurance Fund, prior authorization of the General Assembly of Partners shall be required;

II. Meet and enforce the agreements of the General Assembly of Partners and the Statutes of the Insurance Fund;

III. Propose to the General Assembly of Partners the insurance, co-insurance and reinsurance budgets and programs;

IV. Report to the General Assembly of Partners on their management and on the operational results and financial statements of the financial year;

V. Make representations, conclude contracts and, in general, monitor the operation of insurance, co-insurance and reinsurance in its various hedges;

VI. To appoint the Manager or Director of the Assurance Fund, who will have the powers for litigation and charges and acts of administration with the limitations that, if any, The Council is to be appointed by the Council at its appointed session. The Manager or Director shall in no case enjoy powers for domain acts;

VII.    Agree on the admission, suspension and separation of partners when they are provided by the Statutes and on condition that such agreement be ratified at the next session of the General Assembly of Partners;

VIII. Instrumentation the partner recovery mechanisms in charge of the partners, and

IX. The others provided for in this Act and the corresponding Statutes.

The Council shall convene in writing, signed by the President or the Secretary, in the form and terms indicated in the Statutes, and shall include the agenda. The respective minutes which shall contain the matters dealt with and the agreements adopted shall be lifted. The minutes shall be signed by all members of the Board of Directors participating and by the members of the Supervisory Board who attend.

The Board of Directors shall be held at least once a month or whenever the matters of the Insurance Fund so require.

Article 21. The Director or Manager of the Assurance Fund must meet the following requirements:

I. Having knowledge and experience in agricultural insurance or general insurance and administration;

II. Contar with the validation of the Integrator Body to which the Fund is affiliated or with which it has concluded the service delivery contract stated in the Article 68;

III. Do not have any of the impediments that to be Counsellor points to article 19, and

IV. Others that this Act or the Statutes of the Assurance Fund determine.

Article 22. The Assurance Funds must have a Surveillance Board, which will be integrated with partners of the Insurance Fund itself, will be constituted by a President, a Secretary and a Vocal with their respective alternates. In no case may the members of this Board be a member of the Board of Directors.

The members of the Supervisory Board will last for three years and may be re-elected if they are established by the Statutes.

Article 23. In order for a partner to be elected as a member of the Supervisory Board, he/she must meet the same requirements as for the election of the members of the Board Administration.

Article 24. These are the powers and obligations of the Supervisory Board:

I. Monitoring that all Acts of the Assurance Fund are made in accordance with this Law, the Statutes and applicable regulations;

II. To give the General Assembly an annual report on its management, on the performance of the Board of Directors, as well as the Director or Manager;

III. To convene the General Assembly of Partners in the event of the failure of the Board of Directors and when deemed appropriate;

IV. Attend with voice but no vote to the sessions of the General Assembly of Partners and the sessions of the Board of Directors, for which they shall be called in the form and terms that provide for the Statutes;

V. Report in a timely manner to the General Assembly of Partners and the corresponding Integrator Body on any deviation observed in the operation of the Assurance Fund in order for the conduct to be determined, and to monitor that the observations made are duly resolved and the irregularities detected are corrected;

VI. Where appropriate, recommend and justify to the General Assembly of Partners its acceptance or rejection of the financial statements of the financial year and of the report of the Administration, and

VII. The others provided for in this Act and in the Statutes.

The Supervisory Board will have to meet in advance of the sessions of the General Assembly of Partners and when the issues to be dealt with merit it. The respective minutes which shall contain the matters dealt with and the agreements adopted shall be lifted. The minutes will be signed by all participants.

The General Assembly of Partners may remove the members of the Supervisory Board, for failure to comply with the functions entrusted and for the causes identified for the removal of the Members of the Board of Directors.

Article 25. Members of the Board of Directors may not vote in the sessions of the General Assembly of Partners deliberating on the approval of the evaluation of results, balance sheets and financial statements and the report to be submitted by the Supervisory Board, or in any other matter of this nature.

If this provision is contravened, the vote of any Counsellor shall be null and void in the terms of the corresponding Statutes.

Third Chapter Of The Admission, Separation, Suspension, and Exclusion of Partners

Article 26. To be a Partner of an Assurance Fund you require:

I. Being a natural person of Mexican nationality in full exercise of their rights and carrying out agricultural or livestock activities, or having their residence in the rural environment; or either, being a moral person of Mexican nationality with an exclusion clause from foreigners, whose social object provides for the carrying out of agricultural or livestock activities, or of the rural environment;

II. Submit a written entry request;

III. Do not be a partner in another Assurance Fund except as provided for in section VI of this same article. If the person concerned has participated in another insurance fund, he must present the minutes of the General Assembly which has agreed to his separation; or, the request for separation received by the Insurance Fund to which he belonged, where no reply has been given to it within the period referred to in the following

;

IV. Submit information for the purpose of determining whether you are eligible to join the Insurance Fund. Each Assurance Fund shall lay down the requirements to be met by the person concerned;

V. That the General Assembly of Partners or the Board of Directors, in the event that the Statutes provide it, accepts the new partner's application for membership. If admitted by such a Council, the final approval of the admission will be required at the next session of the General Assembly of Partners;

VI. The partner of an Assurance Fund may belong to another, as long as the Insurance Fund you originally belong to cannot grant you the services of assurance, which shall prove with the respective constancy that such an Issuing Assurance Fund, and

VII. The others that set the Statutes.

The quality of the Assurance Fund partner will be non-transferable.

Article 27. The separation of any partner must be requested in writing to the Board of Directors; which, as appropriate, will resolve the conduct or submit the application to the General Assembly of Partners to be accepted or rejected. Between the request for separation and the resolution, no longer period of 15 calendar days. The acceptance of the separation shall be conditional on the partner concerned having covered all its responsibilities for the insurance fund, or has signed an agreement with the insurance fund to ensure compliance with those obligations. responsibilities.

When the partner who has requested in the above terms his separation from the Insurance Fund, has no obligations to fulfill his or her duties and has not received a reply within the term referred to in the preceding paragraph, its separation decision shall produce effects on the working day following the expiry of that period, even without the acceptance of the General Assembly of Members or of the Board of Directors, corresponds.

Article 28. The General Assembly of Partners may suspend or exclude any partner. If the Statute provides for this, the Board of Directors may suspend it. The suspension will proceed when the partner incurs any of the following causes:

I. Aporting false data related to the assets to be secured;

II. Failure to comply with the General Assemblies of Partners or violate provisions of this Act;

III. Causing property damage to the Assurance Fund or its partners;

IV. Do not fully and in a timely manner cover the Insurance Fund for contributions to your charge;

V. Do not perform insurance operations with the Assurance Fund, and

VI. The others that set the Statutes.

The suspension may be for up to two years as agreed by the General Assembly of Partners. In case of damage caused, the suspension will last until the same is repaired or compensated to the satisfaction of the Fund of Assurance or the partners affected. In the event of recidivism, the General Assembly of Partners may resolve the exclusion of the partner, which will entail the definitive loss of their rights as such.

Chapter 4 Of Operation and Operation

Article 29. The Assurance Funds will work so that the hedges they practice are not for profit for the same or for the partners. They may only charge their partners for a fee which is essential to cover the general expenses incurred by their management and the fees for their Integrators; cover the reinsurance premium and accessories thereto; to increase in accordance with this Law the necessary technical reserves to fulfil its insurance commitments with its partners; to make contributions to the Protection Fund and the Common Risk Retention Fund; and to create and increase the Social Fund provided for in this Law.

Article 30. The Assurance Funds will only be able to provide insurance services to their partners so they will not be able to grant protection to third parties.

Article 31. The Assurance Funds will only be able to perform the following operations:

I. Practice the insurance operations referred to in Article 3 of this Act subject to registration by the Secretariat;

II. Constituency and invest the reserves provided for in this Law;

III. Manage the retained resources to the insurance institutions of the country and abroad corresponding to the reinsurance operations they have held;

IV. Constituency deposits in credit institutions;

V. Operate with commercial documents on their own for the realization of their social object;

VI. Acquire the movable and immovable property necessary for the realization of its social object, and

VII. Those that are necessary for the realization of your social object.

Article 32. The insurance operations that carry out the Assurance Funds with their partners will be formalized through assurance constances, which must be delivered to the Member of the Insurance Fund and in which the rights and obligations of the parties shall be recorded. The constancy of assurance shall contain, at least:

I. The naming of the Assurance Fund;

II. The name of the secured partner;

III. The signature of the Insurance Fund representative;

IV. The designation of insured persons or assets;

V. The nature of the risks covered by the coverage;

VI. Where applicable, the name and address of the beneficiaries;

VII. The insured sum or benefit in charge of the Assurance Fund;

VIII. The deductibles, if any;

IX. The date of issue and coverage period;

X. The amount of the quota, and

XI. The place and method of payment.

To this effect both the Assurance Funds and their partners will be obligated, in the terms provided for in Article 6o. and in everything that does not contravene this Law, as provided by the Law on the Contract of Insurance.

Also, the Insurance Fund will have a period of 60 calendar days, after the issuance of the insurance record, to accredit its partners that its coverage is is covered under a reinsurance contract.

Article 33. For damage insurance, the Assurance Funds may allocate up to 25% of the fees charged, once the premium and its accessories have been separated. paid by reinsurance, to cover the costs of administration and operation, including in respect of subscription, inspection and settlement of claims, as well as to cover the corresponding fees for the Integrators. Fees arising from proportional reinsurance or co-insurance contracts may be used for the same purposes, and in such cases the percentage shall be that which is incurred in such operations.

For life and accident and disease insurance, the amount of administrative and operating expenses will be the remainder of the fees charged, once the amount of the charges is deducted. technical reserves to be established by the Secretariat in accordance with the provisions of Article 34 of this Law and to consider, where appropriate, the cost of reinsurance.

When the funds for the exercise of their operations cannot be fully covered by the resources at the disposal of the Guarantee Fund, it may be determined by the contribution of additional resources to cover working capital needs, contributions to the Integrators ' bodies, as well as investment in fixed assets supporting the Fund's administration, subscription, inspection and adjustment functions For which they will have to have the agreement of their Assembly General of Partners.

Article 34. The Assurance Funds shall constitute the following technical reserves:

I. Risk Reserve in Course. For life and accident and disease insurance, it is the one which is constituted on the basis of the provisions which the Secretariat will issue to the Commission, hearing the Commission, for each line of operation. For damage insurance, this reservation will be made with the total of the resources from the fees charged after the payment of reinsurance and the amount corresponding to administrative and operating expenses, in terms of the expected Article 33 of this Law. The investment product of the Current Risk Reserve will be part of the same, and

II. Contingency Reserve. This is constituted with 25% of the remnants of the social exercise. This reserve is cumulative and the product of your investment will be part of it. Each Assurance Fund shall have the power to define the terms in which the resources of this reserve may be committed to increase its risk retention and to negotiate the terms and modalities of the reinsurance coverage, as well as make contributions to the Common Risk Retention Fund as provided for in Articles 75 and 84 of this Law. In the operation of the agricultural sector, this reserve must be constituted at the end of each agricultural or livestock cycle, but when its accumulated amount reaches the equivalent of 15% of the insured sum of the agricultural cycle and/or current livestock year, the Remnants that are generated particularly in that operation will be made available to increase the social fund, if approved by the General Assembly.

For the purposes of this Law, the remainder is the amount that may exist at the end of the social year, resulting from the amount that the withholding fees will import plus the financial products, plus the low-claims premiums agreed in the reinsurance contracts or other concepts, plus the fees received for reinsurance transferred, less, the resources incurred by way of operating expenses, quotas, cost of reinsurance and net cost of claims. In the case of agricultural insurance, the remainder shall be determined at the end of the agricultural or livestock cycle.

Article 35. The Assurance Funds will have a Social Fund that will be integrated as follows:

I. With the assets and values that the partners agree to for their constitution;

II. Additional contributions made by partners;

III. From donations and/or public or private contributions to be obtained, and

IV. Of 70% of the remnants obtained at the end of each social exercise or, for the case of agricultural insurance, at the end of each agricultural or livestock cycle.

The Social Fund and its increase will be intended to meet the purpose of the Assurance Funds, with the knowledge and approval of the General Assembly of Partners being available. of its constitution, increases and specific allocations. These resources may be allocated by the Guarantee Funds to the increase of their technical reserves; to the reduction of the insurance quotas; to their technical, operational and administrative strengthening; to the equipment and purchase of movable and buildings; to create reserves for various labor liabilities; to provide social security benefits; as well as for the integration of economic and service organizations that support agricultural, agro-industrial, commercial, financing, risk management, and overall those that contribute to rural development for the benefit of the partners of the Assurance Fund and their communities. These organisations shall be composed of all the partners of the Insurance Fund concerned.

Article 36. In insurance operations, the Assurance Funds must apply the hedges, fee rates, deductibles, insured sums, rules, participation in losses, allowances, General and Special Conditions, and other elements and components relating to insurance, in accordance with one of the following two options:

I. Dealing with insurance or reinsurance institutions in the country that provide the reinsurance service, based on the insurance product that the effect of which is recorded before the Commission such institutions, or

II. Dealing with foreign reinsurers who grant them such a service, based on the technical and contractual elements that it agrees with the insurance institution or reinsurance company that grants them such a service.

The determination of the cost of insurance quotas should take into account the rates of accident in the area in which it operates, as well as the sinister experience of the area. partners.

Article 37. The Assurance Funds may only retain risks up to an amount equal to their ongoing risk reserve plus the part of the Special Contingency Reserve. which commit to the payment of compensation.

All risks that cannot be covered with such technical reserves shall be backed by reinsurance schemes, co-insurance or through the Common Risk Retention Fund, in terms of what is foreseen in this Act.

The Assurance Funds shall refrain from granting insurance when the provisions of this Article are not complied with.

For the purposes of the above, the Assurance Funds may, in their various forms, be able to contract any of the co-insurance or reinsurance schemes, in the latter case they may be proportional, non-proportional type or a combination of the two preceding ones.

The Assurance Funds may contract reinsurance exclusively with insurance or reinsurance institutions in the country authorised to perform the operation or class concerned, as well as with foreign reinsurers registered in the General Register of Foreign Reinsurers in charge of the Secretariat, provided for in Article 27 of the General Law of Mutual Insurance Institutions and Societies.

The Assurance Funds shall ensure that the partners shall receive in full the compensation to which they are entitled to the occurrence of any level of claims.

Article 38. The social exercise of the Assurance Funds will be one year, will start on January 1 and end on December 31, with the exception of the first year of the year. operations, which shall start, on the date of its establishment and end on 31 December of that year.

Any act or contract that means a change in the assets, liabilities, results or Social Fund of an Insurance Fund, or involves a direct or contingent obligation, shall be registered in the accounting.

In their accounts they must be adjusted to the general catalogue of accounts authorised by the Commission by means of general provisions. Subject to the authorisation of the Commission, the assurance funds required may introduce new accounts, indicating in their application the reasons for this.

The Assurance Funds must formulate their financial statements at the end of each social year, which must be audited externally by an independent Public Accountant. approved by the General Assembly of Partners. The opinion shall contain an opinion on the financial statements and the constitution or increase of reserves. The Independent Public Accountant shall be responsible for the integrity and sufficiency of the opinion, in terms of the generally accepted accounting principles, as well as the regulatory framework governing the operation of the Assurance Funds.

These financial statements should be submitted to the Integrator Agency that grants them the Technical Advisory and Operations Tracking service, along with the information that Body ask them for this.

Article 39. When you invest your technical reserves, the Assurance Funds will conform to the following:

I. Should be kept, at all times, in securities issued or backed by the Federal Government, in securities approved by the National Banking and Securities as an object of investment in the technical reserves of insurance or mutual insurance institutions and companies in credit institutions with the exception of the business master account and the checking account;

II. In foreign currency insurance, foreign currency reserves denominated in foreign currency securities issued or supported by the Federal Government shall be invested in securities denominated in foreign currency that are entered in the National Register of Securities and Intermediaries carried by the National Banking and Securities Commission;

III. The securities or securities referred to in the preceding fractions shall be deposited in credit institutions, institutions for the deposit of securities or in houses Bag;

IV. The special contingency reserve may be supported by agreements for the transfer of rights of PROCAMPO of the partners in favor of the Funds of Assurance. Interest payments shall be considered as a percentage equivalent to the percentage of the Funds being obtained from the investments of the other technical reserves. The above is conditional on the partner acquiring insurance with the Fund in question, in which the risk of being unable to perform the sowing is protected, invariably the preferred beneficiary will be the Insurance Fund.

If, as a result of this operation, the Assurance Fund will not reach, for any reason to restore one hundred percent of the special contingency reserve, it will have to of your Social Fund present or future the amount of sufficient resources to reintegrate the total amount of the special contingency reserve;

V.      The Assurance Funds shall conclude contracts with the different depository bodies, in which the obligation of the same to formulate monthly statements of account where they are identified in a manner shall be laid down as a requirement individualized the deposited instruments;

VI. Dealing with investments in foreign currency may serve as depository agencies of Mexican financial institutions or foreign financial institutions that are subsidiaries of those, and

VII. The Assurance Funds, when carrying out the investments referred to in the preceding fractions I, II and III, shall observe the following limits, both in currency national as in foreign currency:

a) By type of securities, deposits or securities: (i) securities issued or backed by the Federal Government, up to 100%; (ii) securities issued or backed by institutions of credit up to 60%; (iii) securities issued by entities other than those referred to in points (i) and (ii) above, up to 30%, and

b) By issuer or debtor: (i) securities issued or backed by the Federal Government up to 100%; (ii) securities issued or backed by credit institutions up to 18%; and (iii) securities issued by entities other than those referred to in points (i) and (ii) above, up to 7%.

Article 40. The Assurance Funds may only operate within their zone of influence, which must be determined in the Statutes that will be pointed out by the municipalities that make up the Fund. New municipalities may be integrated into their area of influence only by:

I. The corresponding modification of the Statutes;

II. That they have the commitment of the institutions that will provide them with reinsurance, and

III. The obtaining of a favorable opinion from the Integrative Body that corresponds to the one that is affiliated or, in the case of non-affiliation, of the Integrative Agency responsible for granting them the Technical Advisory and Operations Tracking service or the Integrator Body or entity designated by the Secretariat.

Article 41. To the Assurance Funds, the prohibitions contained in Article 93 of the General Law on Mutual Insurance Institutions and Societies are applicable to them.

SECOND TITLE OF THE INTEGRATOR ORGANISMS

Chapter First Of Your Organization

Article 42. The Assurance Funds may constitute associations at the National, State, and Local levels. Subject to the provisions of this Law, the social contract of its constitution and the Statute must be granted to the public purse, stipulating its character as an integrator and society body for non-profit purposes, with legal personality and own assets; the social object; the duration of the company, which may be for an indefinite period; the domicile, which must be within the national territory; the name of the company; and the relationship of the founding members, principal directors, directors and administrators. The activities of the National, State and Local Integrators shall be the activities of their social object and shall refrain from other activities.

Article 43. The National Integrator Agency will be constituted with the voluntary grouping of State Associations, and must be registered with the Secretariat for the performance of the functions referred to in this Law in Article 47.

Article 44. State Integrators shall be constituted with the voluntary grouping of Local Integrators and/or the Insurance Funds of the Federative Entity of in the case, and shall be registered with the Secretariat for the performance of the powers assigned to it in accordance with the provisions of Article 47.

Article 45. The Local Integrators shall be formed with the voluntary pool of Assurance Funds of the same geographical area of the Federative Entity concerned, and must be registered with the Secretariat for the performance of the tasks assigned to it in accordance with the provisions of Article 47.

Article 46. Applications for registration to operate as a National, State or Local Integrator Agency shall be submitted to the Secretariat, accompanied by the documentation and information as referred to in Article 48 of this Law, and in the case of State and Local Integrators, such documentation shall also include an opinion of the National or State Integrator Body as appropriate; if it is favourable, it includes the functions it will delegate in accordance with the provisions of in Article 47. The records provided by the Secretariat shall be by their own incommunicable nature.

The Secretariat will have a period of ninety calendar days to issue a resolution regarding the registration applications that have been submitted to it. The Secretariat shall be deemed to have a positive effect on the application for registration, if it does not communicate the contrary within the above period.

Article 47. The following functions shall be performed by the Integrating Bodies:

I. Grant the Technical Advisory and Operations Tracking Service to the Assurance Funds. The Operations Tracking function will adhere to the general guidelines issued by the Secretariat, listening to the Commission, and will have to consider that the Assurance Funds will receive advice and the service to follow up operations, between other aspects, for:

a) Organize and operate as provided by this Act;

b) Perform your insurance operations in accordance with the provisions outlined in Article 6 of this Law and other applicable regulations;

c) Carry out your operations by applying the hedges, fee rates, deductibles, insured sums, rules, participation in losses, franchises, General Conditions and Special, and other elements and components relating to insurance, in terms of the provisions of Article 36 of this Law;

d) Hire reinsurance and/or co-insurance schemes to suit their characteristics, and to operate their hedges under such contracts, in terms of the provisions of this Act, and

e) Promote voluntary dispute resolution mechanisms between the Assurance Funds and their partners.

Likewise, the general guidelines issued by the Secretariat will define the way and terms in which the Integrators will follow up the operations of the Insurance funds, in particular their results, the constitution and investment of their reserves, their expenditure and the reports on these issues to be submitted to the Secretariat itself;

II. Fungir as legal representatives of its affiliates to individuals, agencies, authorities and institutions both domestic and foreign;

III. Provide the Assurance Funds with technical, legal, administrative, financial and training services;

IV. To promote in general the technical and operational improvement and capacity of its members, as well as their employees;

V. Homologar, as appropriate, regulations, procedures, and operating mechanisms, as well as accounting and computer systems;

VI. Integrate databases on insurance operations, risk rating, and all related to the operation of the Assurance Funds, only use such information for the purpose of their object, and shall refrain from providing information for purposes other than those mentioned above;

VII.     Constitute and administer a Protection Fund and the Common Risk Retention Funds, which integrate the Protection System, in the terms described in this Law;

VIII. Register, evaluate and, where appropriate, validate, technical staff of the State and Local Integrators and service companies participating in the provision of the Technical Advisory and Monitoring Service of the Operations of the Assurance Funds;

IX. Promote that the Assurance Funds from the resources of your Social Fund and contributions from other sources, form other productive and service organizations for the benefit of its partners, for the granting of credit, marketing of inputs and crops, savings agencies, technical service, among others. To this end, the Integrator Agency will provide advice on the various legal and regulatory provisions governing these organizational options, identify the various incentive programs that have an impact on these projects, support the steps required by the relevant authorities and, in general, will support anything that is required for the achievement of these organisations, and

X. Promote that partner organizations in the Assurance Funds referred to in the previous fraction integrate a corporate administration to provide administrative, commercial, tax, legal, IT, technical, financial and other related services that strengthen the linkage between such organizations.

The functions of the integrated agencies described are the National Integrator Agency, which, for its exercise, must have registration with the Secretariat.

the National Integration Body may delegate such functions, under its supervision and coordination, to State and Local Integrative Bodies, taking into account their levels of development and consolidation.

In turn, the State and Local Integrators will be able to request the National Integrator Agency to delegate functions that are of interest to them, for which they must accompany such a request with a Work Plan. The National Integration Body shall provide a response within a maximum of 30 calendar days; in case such a response is negative, the Integrator Agency may submit its application directly to the Secretariat.

Article 48. The Integrative Agencies when applying for registration with the Secretariat, must accompany their application:

I. The testimony of the constitutive public deed of the National, State or Local Integrator Body, containing the Statutes that will have to adhere to the provisions and mechanisms that this Law establishes, indicating their subjection to the general guidelines referred to in Articles 47 and 85 of this Law, as well as their registration in the Public Registry of Property and Commerce. The Statutes shall indicate their object and internal organization among other aspects, in accordance with the provisions of this Law and other applicable regulations;

II. The geographical scope in which you will operate;

III. The general program of operation, which allows the Secretariat to assess whether the Integrator Agency will be able to meet its object adequately. This programme shall contain at least:

a) Job plans;

b) Membership policies;

c) The information and documentation that you credit that has the necessary infrastructure to carry out your object, and

d) The relationship of your top managers and managers, including the Commissioner, with the curriculum vitae being accompanied by them;

IV. The draft internal regulation, based on which it will perform its functions in accordance with this Law, and

V.       In the case of State and Local Integrators, the opinion of the National Integrator Body.

Amendments to the Statutes should be made of the Secretariat's knowledge.

Article 49. The Integrators shall not be able to affiliate with natural persons, or to conduct insurance operations directly or through a person.

Article 50. Each Integrator Body shall formulate its rules of procedure, which shall include, inter alia, the rules applicable to:

I. Admission, suspension and exclusion of affiliates;

II. The form and methodology in which the functions referred to in Article 47 shall be exercised;

III. Preventive, corrective, and internal control measures;

IV. The rights and obligations of affiliates, as well as non-affiliates who have contracted the Technical Advisory and Operations Tracking service;

V. How to determine the quotas to be contributed by your affiliates;

VI. The contributions that the Assurance Funds will have to cover for the Protection Fund and the Common Risk Retention Fund;

VII. Voluntary dispute settlement mechanisms between the Assurance Funds and their partners, and

VIII.    The way in which information about the services they offer will be provided to the affiliates in order to strengthen the culture of prevention in general and insurance in particular.

Article 51. The Assurance Funds, in their relationship with the Integrators, will have the following obligations:

I. To carry the periodic fees to be fixed by the General Assembly of Members of the Integrator Agency for support, the cost of providing the Advisory Service Technical and Follow-up to its Operations and the contributions for the Protection Fund and the Common Risk Retention Fund, in the terms of this Law and the provisions that emanate from it;

II. Provide the Integrator Agency with the information and documentation it requires for the purposes of fulfilling its functions as set out in this Act;

III. Meet the stipulations contained in the contract of affiliation or provision of Technical Advisory and Operations Tracking services, as the case may be;

IV. Attend through their representatives, to the sessions of the General Assembly of Affiliates of the corresponding Integrator Agency and/or to the meetings convened by the same;

V. Meet the resolutions adopted by the General Assembly of Affiliates of the corresponding Integrator Agency, and

VI. The others that point to you this Law and other applicable provisions.

Article 52. The Integrators shall submit to the Secretariat the information in the form and terms that they request in accordance with the general guidelines to referred to in Article 47 of this Law. The Secretariat may request the Commission, where it deems necessary, to carry out inspection visits to verify compliance with this Law and other applicable regulations, by the Integrators and, where appropriate, the Insurance funds. In order to do so, the Commission will have no opposition to this Law, all the powers conferred on it by the General Law on Mutual Insurance Institutions and Societies.

Article 53. The Secretariat, listening in advance to the Integrative Body concerned and the opinion of the Commission, may in its judgment revoke the registration it would have granted to the exercise the functions set out in this Law, in the following cases:

I. If you do not start operations within sixty business days of the date of the registration;

II.        If you do not diligently fulfill the functions provided for in this Act;

III. If you conduct operations in contravention of the provisions of this Law or the provisions of this Law, or if your activities depart from sound practices, or if abandons or suspends its activities;

IV. If in spite of the Secretariat's observations, it repeatedly fails to comply with the activities set out in this Law;

V. If they do not provide the Secretariat with the required information, or it presents in a dolous manner, false or incomplete information, that does not permit to know its actual situation, or that of its affiliates;

VI. If they are handled irregularly, if any, the resources that make up the Protection Fund and the Common Risk Retention Fund;

VII. If work without authorization from the Secretariat, in cases where the Act so requires, or

VIII. If it is dissolved, liquid, or broken.

Article 54. The Insurance Funds affiliated with an Integrator Agency, whose registration has been revoked by the Secretariat, shall apply for membership of an Agency A different integrator or subject to the non-affiliated insurance fund scheme in a term no longer than thirty working days from the date on which the aforementioned revocation takes effect.

Article 55. The Integrators shall have a General Assembly of Affiliates which shall be the supreme body of the Integrative Body and shall be composed of the representatives of its members. They will also have a Board of Directors, a Commissioner, with their respective alternates, and a Manager or Director. Their privileges shall be as set out in this Law, in the Statutes and other applicable provisions.

For the performance of their functions, the Integrators will have specialized technical personnel or may hire service companies for this purpose.

In the case of the State Assemblies, a representative of the National Integrative Agency should be invited to come with a voice but without a vote, and may invite a representative of the Government of the Federative Entity of the Influence Fund's influence area.

Article 56. The General Assembly of Affiliates of the Integrator Agency may be integrated, at the choice of its affiliates:

I.         By a representative of each affiliate, or

II. Through a proportional representation system, in which the number of votes that correspond to each affiliate will be assigned to each affiliate, considering the number of partners and/or the total insured risks from the insurance funds that correspond to it. In no case, an affiliate may represent more than twenty percent of the total votes, except that the number of affiliates is less than five, in such case the representation will be equal percentages for each affiliate.

Article 57. The Board of Directors of the Integrator Body shall be composed of members elected by the General Assembly of Affiliates of the Integrative Body, the number of which shall not be less than three and no more than five, which shall comply with the requirements that to be an adviser to an insurance fund points to article 18. Members will serve for a maximum period of up to five years with the possibility of a single re-election.

The Board of Directors may consist of up to thirty percent of the total of its members by members or officials of the same affiliate, except where they are less than four, in such a case, the representation shall be equal percentages for each affiliate.

Advisers will have an obligation to inform the President of the Council of any situation in which a conflict of interest may arise from their participation and to abstain from participate in the relevant deliberation and resolution.

Article 58. The Board of Directors shall appoint a Manager or Director of the Integrator Body, who shall meet the following requirements:

I. To have provided at least five years services in positions whose performance requires knowledge and experience in agricultural insurance or general insurance and administration, and

II. Do not have any of the impediments that to be a counselor to an Assurance Fund points to article 19.

Article 59. The internal surveillance of the Integrator Agency shall be the responsibility of a Commissioner, whose responsibilities and obligations shall be determined in his Statutes.

The Commissioner will perform the following functions:

I. Verify that the Integrator Body complies with applicable regulation;

II. Receive the reports from the Board of Directors and the opinions of the external auditors for their knowledge and analysis;

III. Report to the Secretariat in terms of the general guidelines referred to in Article 47 of this Law, to the Board of Directors and to the General Assembly of the compliance with its obligations and responsibilities, as well as the findings and irregularities of its knowledge in the performance of its duties, and

IV. Propose to the Board of Directors the internal control and correction program of the Integrator Agency and its modifications, to prevent conflicts of interest and use The information is not available.

The Commissioner will be assisted by a voice but without a vote in the sessions of the Board of Directors of the Integrator Body.

The Commissioner will have to meet the requirements that he

she is a member of an Assurance Fund.

Article 60. Integrators shall verify compliance with the requirements of this Law by persons designated as Directors, Manager o Director and Commissioner, prior to the start of their démarches.

In any case, the persons referred to in the preceding paragraph shall express in writing to the Integrative Body in question and in protest of telling the truth, that they are not located in any of the assumptions referred to in Article 19.

Integrating agencies should inform the Secretariat of the appointment of new Directors, Manager or Director, and Commissioner, within five working days after their appointment. designation.

Chapter Second Of The Affiliate

Article 61. The Assurance Funds may be affiliated with a State Integrator Agency registered with the Secretariat. The State Inclusive Body may, in turn, join the National Integrator Agency registered with the Secretariat.

The State Inclusive Body shall publish annually, in a newspaper of broad circulation in the geographical area in which it operates, the list of its affiliated Assurance Funds.

Article 62. For the purposes of Article 61 above, the Insurance Fund shall conclude an affiliation contract with the State Integrator Agency, in which it is establish, among other stipulations, the compliance of the Insurance Fund with the terms and conditions under which the Technical Advisory and Operations Tracking will be carried out in accordance with the general guidelines to which it is Article 47 of this Law, in the provisions of this Law, as well as in the internal regulation of the integrating body.

Article 63. To formalize the membership contract must be met at least with the following:

I. Contar with the Registry of the Secretariat, to operate as an Assurance Fund, and

II. Exhibit Assembly minutes of the Assurance Fund in which the corresponding affiliation has been agreed.

The formalisation of such a contract shall be effected no later than 30 working days following the date on which the registration has been notified to them to operate as a Fund of Securement.

Article 64. The Assurance Fund may at any time request the corresponding Integrator Body to challenge it.

Article 65. The corresponding Integrator Agency may determine the challenge of an Assurance Fund when it is in breach of the obligations referred to in the Article 51, as well as in the cases provided for in its Rules of Procedure.

Article 66. The Assurance Fund that requests your challenge will not be entitled to be reintegrated into the contributions you made prior to the Protection Fund. and the Common Risk Retention Fund, but may continue to enjoy the rights inherent in it, at the time of the conclusion of the service contract referred to in Article 68.

The corresponding integrative body will continue to exercise on the Unchallenged Assurance Fund, the functions delegated by the National Integrator Agency, and the Fund Insurance cover the cost of these services, until such time as you are subject to the Unaffiliated Insurance Fund regime, in accordance with the provisions of this Law.

Third Chapter of Unaffiliated Assurance Funds

Article 67. The Assurance Funds that do not conclude an affiliation contract with an Integrator Agency, as provided for in this Law, shall be considered as Funds of Non-affiliated insurance.

Article 68. The Unaffiliated Insurance Fund shall enter into a contract for the provision of Operations Tracking Services with the Governing Body of its choice or with the The integrating body or entity designated by the Secretariat. In the case of an entity other than an integrating body, it may not be the entity that provides the reinsurance service to the insurance fund in question.

The contract referred to in the preceding paragraph shall lay down the provisions laid down in this Law for this purpose and shall be effected no later than 30 working days. following the date on which it acquires the non-affiliated Insurance Fund character, and must inform the Secretariat.

The Unaffiliated Insurance Fund shall have all the obligations of the affiliated Assurance Funds inherent in the service provided for in this article including that of covering the cost of that service.

Article 69. In addition to the provisions of the foregoing Articles, the Unaffiliated Insurance Funds may participate in the Protection Fund and may do so in the Fund Common Risk Retention that corresponds to them, in terms of the Single Chapter of Title Third of this Law.

The integrating body that provides the Technical Advisory and Operations Tracking Service, may provide complementary services at a cost equivalent to that of a Affiliated Assurance Fund.

Fourth Chapter of the Fusion, Dissolution, Settlement, and Revocation

Article 70. For the purposes of this Act and in terms of it, the following mechanisms may be used:

I.        The merger of the Assurance Fund;

II. The dissolution and liquidation of the Assurance Fund, and

III. The revocation of the Registry of the Secretariat.

In the cases of merger, dissolution and liquidation, the Insurance Funds may receive financial support from the Protection Fund, which will cover the costs of these funds. mechanisms.

Article 71. The Assurance Fund may be merged with another or others, at its own request to the Secretariat in accordance with the general guidelines of the Fund. set.

Article 72. The Assurance Fund will be dissolved and cleared for the following reasons:

I. By legal provision or competent authority resolution;

II. For the impossibility of continuing to perform its social object;

III.       If it is placed in a technical or financial infeasibility situation;

IV. For loss of registration to the Secretariat;

V. For non-compliance with this Act, and

VI. By agreement of the partners.

In case of dissolution, if there are no debits and there will be remnants at the time of dissolution and liquidation, these shall be distributed among the members in proportion to the quotas paid during the last three financial years prior to its liquidation and in accordance with the provisions of the Statute and the Rules of Procedure of the Insurance Fund.

In the event of liquidation, the General Assembly convened for this purpose shall elect a Liquidator Commission that shall proceed in accordance with the laws of the matter, and shall inform the Secretariat, State integrative body to which it belongs, to the national integrator body and to the institution which provides the reinsurance and/or co-insurance service, within five working days following the conclusion of the assembly in which the taken the deal.

Article 73. When the dissolution or liquidation of an Insurance Fund is determined by the revocation of the registration with the Secretariat, the General Assembly shall elect the Commission Liquidator referred to in the previous Article.

As of the date of the settlement of an Insurance Fund, the payments resulting from its operations will be suspended until the Liquidator Commission resolves this. driver.

In connection with the liquidation or dissolution processes, the General Assembly agreements and the resolution of the Liquidator Commission, must be written in public and register in the Public Registry of Property and Commerce.

Article 74. The Secretariat, listening to the Insurance Fund in question, may revoke the registration of an Assurance Fund in the following cases:

I. If you do not start your operations within a year, as of the date you have been granted your registration;

II. If you do not constitute, increase, invest, and use technical reserves as set forth in this Act;

III.       If you violate the provisions of the foreign clause or establish with the persons, entities or groups mentioned therein, obvious relationships of dependency;

IV.      If you do not diversify your responsibilities as provided for in this Act;

V. If you exceed the limits of obligations you may contract or retain, or if you run operations other than those permitted by this Act;

VI. If you do not comply with the functions for which it was constituted;

VII.     Where, for reasons attributable to the Insurance Fund, the operations which he has carried out are not correctly recorded in his accounts;

VIII. If you secure people who do not have the character of partners;

IX. If you prevent the Integrator Agency from which you are affiliated or the Integrator Agency or entity that has been designated by the Secretariat to carry out the work of Tracking Operations on the terms set out in the contract;

X. If you incur any of the dissolution cases or enter liquidation status, and

XI. If you stop operating for more than two consecutive annual exercises.

The registration revocation declaration will incapacitate the Insurance Fund to grant any insurance from the date on which it is notified of the revocation and will place the Insurance in the state of dissolution and liquidation.

The application for revocation of the registration may be made to the Secretariat by the SAGARPA, by the National Integrator Agency or by the Service of Monitoring of Operations, or by the Boards of Directors or Surveillance or the Partners of the Assurance Fund. The application shall be based and reasoned, specifying the grounds for revocation laid down in this Article and accompanying the documentary evidence concerned, in order to initiate the procedure for revocation, the Secretariat may initiate the procedure without a request.

The Secretariat will assess the origin or the origin of the application for revocation, notifying the interested parties of their decision to initiate or not to initiate the revocation procedure. In case of provenance, it shall notify to the Assurance Fund the initiation of the procedure, making its knowledge the causals that are imputed to it and will give it a period of fifteen working days, from the date of notification, to expose (i) what is appropriate to it. If the cause of revocation is established during the procedure, the Secretariat shall resolve and communicate the declaration of revocation of the registration to the persons concerned.

PROTECTION SYSTEM THIRD TITLE

Single Chapter of the Common Risk Retention and Protection Funds

Article 75. In addition to the Insurance operation, carried out by the Assurance Funds, a Protection System is established by the Protection Fund and the Common Risk Retention Fund, according to the following:

I. The Protection Fund will have the purpose of supporting the Assurance Funds in the payment of the obligations incurred by their partners in the following terms:

a) Support the Assurance Funds declared in dissolution and liquidation to pay the compensation to which the partners are entitled and that it would not be possible to cover with the technical reserves, or with reinsurance or co-insurance contracts;

b) Grant preventive liquidity supports to the Assurance Funds that are in transient financial problems as long as:

i. The study or file is presented that justifies economically, administratively and technically the support requested;

ii.        There is, if any, a reservation restoration program, and

iii.       The guarantees provided by the Technical Committee are granted without prejudice to the provisions of Article 41 of this Law.

The amounts of the preventive liquidity support granted by the Protection Fund shall be approved by the Technical Committee, provided for in Articles 79 and 80 of this Law, and the sum of the same in no case shall it exceed 15% of the assets of that Protection Fund.

c) Support the cases of merger, dissolution, and liquidation of Assurance Funds, tending to cover the costs arising from these mechanisms, and

d) The support provided for in the three preceding points will be independent of the criminal or economic sanctions to be made by the persons responsible for operations illicit, bankrupt assets, misappropriation of technical reserves or the Social Fund of an insurance fund.

II.        The Common Risk Retention Fund will aim to foster a common risk retention system between insurance funds that will allow them to access the reinsurance market on better terms and to obtain more favourable.

Article 76. The Assurance Funds, through the Integrator Agency to which they are affiliated, may participate in the Protection Fund, which they may constitute with the National Integration Body.

The Protection Fund shall be made up of 5% of the remaining remaining in the Assurance Funds in each of the social cycles or exercises, as appropriate, from who subscribe to the membership contract with the respective Integrator Agency, or in the case of non-members, when their participation in the Protection Fund is formalised.

The resources to be integrated by the Protection Fund shall be invested in the same instruments as provided for the technical reserves of the Guarantee Funds in Article 39 of this Regulation. Law.

The respective State Integrators shall provide the Technical Committee with the information it requires to determine the contributions in accordance with this Article.

The Technical Committee may agree to temporarily suspend the payment of contributions to the Protection Fund, where the resources that it integrates represent more than five percent of the total risks insured by the Funds of Assurance that are protected by that Protection Fund.

In the case of non-affiliated insurance funds, they may apply to the integrating body with which the contract for the provision of technical advisory services is concluded. Track Operations, participate in the Protection Fund. Affiliated or non-affiliated Assurance Funds may establish their own Protection Fund, meeting the requirements set forth in this Act that are applicable.

The Assurance Funds will have an obligation to inform their partners about the terms and conditions of the Protection Fund in which they participate. The terms on which the resources provided for in this article are to be granted and applied shall be defined in rules agreed upon by the Assembly of the National Integrator Body on the basis of the provisions of this Law.

Article 77. For the operation of the Protection Fund, the National Integrator Agency shall constitute a Management and Guarantee Trust, on whose contract it shall be as a member of the National Integrator Agency, as a member of the Board of Trustees for the participation of the participating insurance funds and as a trustee of the trust institution. Similarly, provision should be made for the existence of a Technical Committee which will have the powers provided for in Article 80 of this Law.

Article 78. In the escrow contract for the Protection Fund, it shall be provided that, for the purposes of its purposes, the trustee shall, without prejudice to the other duties and obligations established by the Laws, the following:

I. Pay up to where they reach the resources of the Protection Fund, in a subsidiary form, the indemnities to which the partners are entitled and that the Insurance Fund adeude, with the limits and conditions referred to in this Law and those set out in the trust contract itself;

II. Grant financial support to the Assurance Funds, as stipulated in Article 75 of this Law;

III.       Carry out the operations and contracts of a commercial or civil nature that are necessary for the fulfillment of the object of the trust;

IV.      Communicate to the National Integrative Body the irregularities that are due to their competence to know them, and

V. The others that this and other Laws provide for the fulfillment of their object.

Article 79. The Technical Committee of the Protection Fund shall be composed of five proprietary members and their respective alternates to be appointed by the Board of Directors. of the National Integrator Agency and approved by the General Assembly of the same, taking care that they belong to Integrators of different Federative Entities.

Article 80. The Technical Committee of the Protection Fund shall have the following powers:

I. Calculate at the end of each social or agricultural or livestock cycle, as appropriate, of each Assurance Fund the contributions to be paid by the constitution and integration of the protection fund;

II.        Instruct the trustee, on the instruments on which the trust's resources should be invested in terms of Article 39;

III.       Evaluate the operational aspects of the trust;

IV.      Review and approve, where appropriate, the reports that the trustee gives on the management of the fideicomitting heritage;

V. Make public the rules under which support will be given to the Assurance Funds;

VI. Approve cases in which support is granted to the Assurance Funds, in accordance with Article 75, and

VII. The others that this and other Laws provide for the fulfillment of their object, as well as those provided for in the Trust Fund's trust contract.

Article 81. When any Assurance Fund does not comply in time and form with the contributions set forth by the Technical Committee of the Protection Fund, it shall pay the interest moratoria to be established in the corresponding trust contract.

For the calculation of the interest indicated, it should be considered at least the interest that the unpaid contributions would have generated if they had been contributed to the Protection Fund.

Article 82. The National Integrator Agency shall report monthly to the State Integrative Agencies and, through these, to the Assurance Funds, of the State that save the Protection Fund.

Article 83. For the purposes of Article 75 (1), the principal and the accessories of the allowance which have not been paid by the Fund shall be deemed to be Securement.

The amount to be paid to each insured partner in accordance with this Chapter shall be fixed in units of investment from the date on which it determines how the to the Assurance Fund. The payment of the compensation shall be made in national currency, so the conversion of the amount denominated in investment units shall be made using the current value of the said unit at the date the corresponding payment is covered.

Article 84. The Assurance Funds may constitute, through their State Integrator Agency, a Common Risk Retention Fund.

The resources for this purpose will come from contributions, in addition to those provided for in Article 76, by the Guarantee Funds with resources from their special reserve contingency or Social Fund. The establishment and operation of the Common Risk Retention Funds, as well as the administration and use of their resources, shall be governed by provisions which the Secretariat shall issue to the Commission. Such provisions should provide for the possibility that Common Risk Retention Funds managed by two or more State Integrators and even the National Integrator Agency may be established.

TITLE FOURTH OF THE AUTHORITIES ' FACULTIES

Chapter First Operations Tracking

Article 85. The Secretariat shall have in addition to the powers granted to it in other articles of this Law, as noted in this Chapter.

The Secretariat will hear the opinion of the Commission, will issue the general guidelines to which the Integrators will be subject to perform the functions of Operations Tracking Insurance Funds.

The monitoring of the operations of the Assurance Funds by the Integrators will be carried out on the basis of the general guidelines referred to above, by means of a a scheme specifically formulated for this purpose, which shall be different from that applied to insurance institutions and which shall take into account the characteristics of the insurance funds, in such a way as to be carried out under a simplified system focused on the substantive aspects.

the National Integration Body may delegate the functions of monitoring operations of the Assurance Funds to the State and Local Integrative Agencies, taking into account their levels of development and consolidation. The Guarantee Funds shall cover the payment for the benefit of such services by the Member State concerned.

The National Integration Body, State Integrators, Local Integrators and Assurance Funds, shall provide the Secretariat with all the necessary information. information required to verify the proper performance of their duties, in terms of the general guidelines referred to in this Article.

Article 86. The General Assembly, as the highest authority of the Assurance Funds and the Integrative Agencies, may at any time agree to the removal of the Members of the Boards of Directors, the Supervisory Board, the Technical Committees, the Directors or Managers, the Commissioner or those who perform these functions in the terms of this Law, when it considers that such persons do not have sufficient technical or moral quality for the performance of their functions, do not meet the requirements (a) the effect of this Law and the provisions of a general nature which derive from it and which may, by its acts, cause prejudice to the Funds of Assurance and to the Organisms National and State Integrators.

Second Chapter of Promotion and Support for Assurance Funds

Article 87. The Assurance Funds are agencies that must be considered as subjects of promotion and support by government agencies in terms of To the effect, establish the Budget of the Federation's Eglings. Equal treatment as subjects of promotion are recognized in this Law to the Integrative Agencies.

Article 88. The Federal Government and its agencies, will listen to the opinion of the Assurance Funds and their Integrators, in the design and operation of programs. related to the insurance matters referred to in this Law.

Article 89. The SAGARPA, in terms of the provisions of Articles 1 and 87 of this Law, shall propose to the competent authorities the conduct to achieve correspondence between The draft budget of the Federation that annually is proposed to the Legislative Assembly, with the provisions of support and promotion to the Funds of Assurance and its Integrative Organizations provided for in this Law and in the programs These are the sectors that are derived from the Planning Law and the Sustainable Rural Development Law.

Article 90. The SAGARPA will be responsible for executing, coordinating, monitoring, evaluating and following up all promotion and support actions to the Assurance and Guarantee Funds. promotion of the Integration Agencies, which will be established in the Federation's Government Budget, and in general on the development and development of these organisations and their impact on the rural financial system through the administration of risks.

For the development of this function, the SAGARPA will define by means of general provisions a mechanism of permanent concertation in which they participate: the representation of the Funds In addition to the "Securamex" and other agencies and agencies of the agricultural sector.

The SAGARPA will also promote coordination mechanisms with the Federative Entities and the Legislative Branch for the best performance of their function as stipulated in this article.

Article 91. Under the terms of section VII of Article 116 of the Political Constitution of the United Mexican States, the Federal Government, through the SAGARPA, may to conclude agreements with the Federative Entities, in order for them to exercise the functions to be agreed upon in order to comply with this Law.

Article 92. Agroasemex will be the institution responsible for implementing the promotion and support actions that it will point out to the programs that the Decree of the Budget of the Federation, in accordance with the rules of operation issued by the competent authorities in accordance with that Decree and in the terms of the mandates or conventions that it subscribes with the SAGARPA and the Secretariat, according to its field of competence.

Article 93. The actions to promote and support the Assurance and Promotion Funds to their Integrators will be those defined in the support programs that they establish the Budget of the Federation and shall be subject to the rules of operation issued by the competent authorities in accordance with that Decree. These promotion and support actions will be aimed at promoting support to the producer who helps to cover the insurance premiums; to support and strengthen the Technical Advisory and Operations Tracking Service, which is provided by the Law; to consolidate the functioning of the Assurance Funds; to promote their training; to promote the formation of new insurance funds; to develop new products and insurance coverage; to strengthen the technical structures of Insurance Funds; and in general, all those contributing to the to support and facilitate compliance with the provisions of this Law.

Third Chapter Final Provisions

Article 94. Non-compliance or violation of the provisions of this Law and to which they emanate, shall be sanctioned in accordance with the provisions of this Law and in the applicable commercial, civil, tax and criminal provisions.

Article 95. The Assurance Funds and the Integrators, in terms of the general provisions of the Secretariat, listening to the previous opinion of the Commission, shall be obliged, in addition to comply with the other obligations applicable to them, to:

I.         Establish measures and procedures to prevent and detect acts, omissions or operations that may favor, assist, assist or cooperate in any kind for the commission of the offence provided for in Article 139 of the Code Federal criminal law or that could be located in the cases of Article 400 Bis of the same Code, and

II. Submit to the Secretariat, through the Commission, reports on:

a) The acts, operations, and services that you perform with your clients and users, relative to the previous fraction, and

b) Any act, operation or service, which may be placed in the case provided for in part I of this Article or which, if any, may contravene or violate the appropriate application of the provisions set out therein, which he or she is engaged in or where any member of the board of directors, officers, officials, employees and proxies is involved.

The reports referred to in Part II of this Article, in accordance with the general provisions laid down therein, shall be drawn up and submitted by consideration, at least, of the arrangements which are referred to in those provisions; the characteristics to be met by the acts, operations and services referred to in this Article in order to be reported, taking into account their amounts; frequency and nature, the monetary and financial instruments with which are carried out, and the commercial and financial practices observed in the places where they are carried out, as well as the periodicity and systems through which the information is to be transmitted.

Likewise, the Secretariat in these general rules will issue the guidelines on the procedure and criteria that the Funds of Assurance and the Integrators must observe with respect to:

III.       The appropriate knowledge of their clients and users, for which they must consider the background, specific conditions, economic or professional activity and the places in which they operate;

IV. The information and documentation that the Assurance Funds and the Integrators must collect for the opening of accounts or the conclusion of contracts relating to the operations and services they provide and which fully demonstrate the identity of their clients;

V. The way in which the same Assurance Funds and the Integrators will be required to safeguard and ensure the security of information and documentation relating to the identification of its customers and users or those who have been, as well as those of those acts, operations and services reported in accordance with this Article; and

VI. The terms for providing training within the Assurance Funds and the Integrators on the subject matter of this article. The general provisions referred to in this Article shall state the terms for their due compliance.

The Assurance Funds and the Integrative Agencies shall retain, for at least ten years, the information and documentation referred to in the fifth paragraph of this Article, without prejudice to what is set out in this or other applicable ordinances.

The Secretariat shall be empowered to require and collect, through the Commission, information and documentation relating to the acts, operations and services referred to in the II of this article. The Assurance Funds and the Integrative Agencies shall be required to provide such information and documentation. The Secretariat shall be empowered to obtain additional information from other persons for the same purpose and to provide information to the competent authorities.

Compliance with the obligations outlined in this article will not imply any breach of the obligation of legal confidentiality, nor will it constitute a violation of the restrictions on the disclosure of information established by contract, or the provisions of the confidentiality of the operations referred to in Article 46 (XV), in conjunction with Articles 117 and 118 of the Law on Credit Institutions.

The general provisions referred to in this Article shall be observed by the Assurance Funds and the Integrative Bodies, as well as by the members of the Board. management, administrators, managers, officials, employees, factors and respective proxies, for which, both institutions and companies and the persons mentioned will be responsible for the strict fulfilment of the obligations (a) by means of those provisions.

The violation of the provisions referred to in this article shall be sanctioned by the Commission in accordance with the procedure laid down in Article 138 of the General Law of Institutions and Mutual Insurance Companies, with a fine of up to 100,000 days of daily minimum daily wage in the Federal District.

The aforementioned fines may be imposed, the Insurance Funds and the Integrators, as well as their members of the board of directors, administrators, managers, officials, employees, factors and proxies, and natural and moral persons, who, by reason of their acts, have caused or intervened to have such entities incur or are responsible for the irregularity.

The public servants of the Secretariat and of the Commission, the Assurance Funds and the Integrators, its members of the Board of Directors, administrators, managers, officials, employees, factors and proxies shall refrain from reporting any reports and other documentation and information referred to in this article, to persons or authorities other than those expressly authorized in the orders relating to require, receive or retain such documentation and information. The violation of these obligations will be sanctioned in the terms of the corresponding laws.

Article 96. For the purposes of Article 400 Bis of the Federal Criminal Code, it is understood that the Assurance Funds and the Integrators are intermediaries. (c) financial instruments for which the penalties provided for in that Article shall apply.

TRANSIENT

ARTICLE FIRST.- This Decree shall enter into force the day following that of its publication in the Official Journal of the Federation.

ARTICLE SECOND.- The Assurance Funds registered with the Secretariat prior to the entry into force of this Decree, may maintain their registration with the sole a requirement to provide evidence of the public deed referred to in point (b) of Article 8 (2) (b). of this Law, in a term not greater than 270 calendar days counted from the entry into force of this Decree.

Concluded the indicated period, the Assurance Funds that have not been fulfilled as referred to in the preceding paragraph shall refrain from operating as Assurance Funds.

ARTICLE THIRD.- During the 270 calendar days established in the previous article, the Insurance Funds that perform insurance operations will continue to be subject to the The General Rules for the Constitution, Operation and Operation of the Agricultural Assurance, Peasant Life and Conexo Funds to the Agricultural Activity.

ARTICLE FOURTH.- The National, State and Local Associations of Assurance Funds that are formally constituted on the date of the entry into force of this Law, shall be subject to the requirements laid down in it for its constitution and registration as an integral body, and shall only submit the application for registration to the Secretariat accompanied by the documents referred to in the Part I, III and IV of Article 48 of this Law, within a period of 270 natural days from that date.

ARTICLE QUINTO.- Registration requests submitted to the Secretariat to constitute and operate Assurance Funds, which have not been resolved prior to entry into The Law on Agricultural and Rural Assurance Funds shall be deemed to have been resolved in a negative manner and the relevant stakeholders may, where appropriate, initiate the procedure to obtain the registration referred to in the Article 8o. of the same Law.

ARTICLE SIXTH.- The Secretariat will have a maximum period of 270 calendar days counted from the entry into force of this Decree to issue the general guidelines provided for in the Law.

ARTICLE SEVENTH.- The General Rules for the Constitution, Operation and Operation of the Agricultural Assurance, Peasant Life, and Agricultural Activity Funds will continue In force for a period of 270 calendar days from the entry into force of this Law and shall apply for those Assurance Funds that are in the case of the first paragraph of the Third Transitional Article. All provisions that oppose this Law shall be repealed.

Mexico, D.F., as of March 10, 2005.-Sen. Diego Fernandez de Cevallos Ramos, President.-Dip. Manlio Fabio Beltrones Rivera, President.-Sen. Sara I. Castellanos Cortes, Secretary.-Dip. Marcos Morales Torres, Secretary.-Rubicas.

In compliance with the provisions of Article 89 (I) of the Political Constitution of the United Mexican States, and for its due publication and observance, I request this Decree in the Residence of the Federal Executive Branch, in Mexico City, Federal District, at the twenty-seventh day of the month of April, two thousand five.- Vicente Fox Quesada.-Heading.-The Secretary of Government, Santiago Creel Miranda.-Heading.

DECREE for the reform of Articles 289 and 290 of the Federal Law of Rights.

On the sidelines a seal with the National Shield, which reads: United Mexican States.-Presidency of the Republic.

VICENTE FOX QUESADA, President of the United Mexican States, to its inhabitants known:

That the Honorable Congress of the Union, has served to address the following

DECREE

THE GENERAL CONGRESS OF THE MEXICAN UNITED STATES, DECREES:

ARTICLES 289 AND 290 OF THE FEDERAL LAW OF RIGHTS ARE REVIEWED.

ONLY ARTICLE. Articles 289, fraction II; 290, first paragraph, of the Federal Law of Rights are AMENDED to read:

Article 289. ........................................................................................................................................................................

II. The taxpayers may choose to pay the right provided for in part I of this article, for the aircraft mentioned in the table contained in this fraction, by a single quota for each time the fuel is supplied to it to the aircraft concerned, in accordance with the following table:

Aircraft

Cuota

With wingspan of up to 10.0 meters and helicopters

$70.00

With wingspan of more than 10.0 meters and up to 11.1 meters

$100.00

With wingspan of more than 11.1 meters and up to 16.7 meters

$150.00

.............................................................................................................................................................................................

Article 290. For the classification of aircraft in small and medium-sized and medium-sized aircraft, as referred to in the previous Article, the size of the aircraft concerned shall be taken into account in accordance with the following table:

Classification by aircraft

Small

Medias

Type A

Type B

Up to 16.7 meters and helicopters

More than 16.7 meters up to 25.0 meters

From more than 25.0 meters to 38.0 meters

More than 38.0 meters

.............................................................................................................................................................................................

TRANSIENT

ONLY.- This Decree shall enter into force on the day following that of its publication in the Official Journal of the Federation.

Mexico, D.F., on April 14, 2005.-Dip. Manlio Fabio Beltrones Rivera, President.-Sen. Diego Fernandez of Cevallos Ramos, President.-Dip. Marcos Morales Torres, Secretary.-Sen. Rafael Melgoza Radillo, Secretary.-Rubicas.

In compliance with the provisions of Article 89 of the Political Constitution of the United Mexican States, and for its proper publication and observance, I hereby express my request for the Decree at the Federal Executive Branch in Mexico City, Federal District, at the twenty-seventh day of April of two thousand five.- Vicente Fox Quesada.-Rubrias.-The Secretary of the Interior, Santiago Creel Miranda.- Heading.